Many people turn to Texas private money lenders who offer hard money when they cannot obtain funding from their local bank or public lender. While there are reliable private lenders out there, it’s important to know what to watch out for so you don’t find yourself in even greater need of financial assistance than you were before.
Hard money is an option for people looking for money fast. Maybe they need the speed that banks don’t offer, needing to start a project literally the day they get approved of the loan, or they are bidding for a property on a competitive market. Whatever the reason is, Texas hard money loans have plenty of attractive qualities that make it seem like a great option to the ordinary borrower. However, before you agree to just any terms of hard money, there are a few things to consider.
When Hard Money is more Horrifying than Helpful
The first major thing to consider when evaluating the potential of Texas hard money loans is the high interest rates. Investors that offer hard money can offer speed, but it comes with a cost. The price of hard money can sometimes be as high as five percent more than that of public lenders. Someone on a budget may not be able to afford the interest of hard money. However, many people like builders and those working on fixer uppers find the price worth it if they are able to get the money fast.
Additionally, they find that the short repayment period works well with the timeline of building and renovating. If you need hard money for something other than home building or flipping, Texas hard money loans are something you should heavily consider. The last thing you want is to be unable to pay for the loans and have a completely new financial issue to worry about.
Following Your Dreams Down the Path That’s Right for You
Private investors can be great options, but they are definitely not for everyone. Just because they can approve more people than the average bank doesn’t mean those approved borrowers are being smart with their money.
Each situation is different, and you have to evaluate the needs of yours first. There are lots of different Texas hard money lenders out there, and if you choose to move forward with hard money you don’t have to accept the first lender you come across. Look for reliable lenders you want to work with who believe in you and your project.
If you need help, you can always hire a real estate attorney who can help evaluate the terms of loan agreements with you so that you can move forward confidently. Otherwise, break down your needs, budget, and timeline and use them to help you make major decisions. If hard money is not for you, don’t give up. There are lots of other loan options you can consider, based on your needs.
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters and 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.